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Minneapolis McDonald's settles for $20K after underpaying staff

A McDonald's on Lake Street violated the citywide minimum wage increase.

More than $20,000 will be paid to employees at a McDonald's in Minneapolis as part of a settlement the fast food chain reached with the city.

The settlement was agreed on months after a report from the Star Tribune found that the McDonald's at 210 East lake Street in Minneapolis didn't follow the citywide minimum wage increase to $10 in January, resulting in 51 employees losing out on money. 

The Minneapolis Civil Rights Department found there was widespread underpayment to employees, a problem it investigated after receiving complaints from community members. 

The settlement money will be used to pay employees what they are owed and cover the cost of penalties, the city announced on Wednesday, although it's unclear exactly how much money each employee will receive or what the penalties cost. 

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Additionally, managers at the McDonald's will go through training and a roundtable discussion involving ownership and workers. The goal of the discussion is to create a safe and open workplace for all company staff. 

Minneapolis' minimum wage ordinance now requires large businesses with more than 100 employees to pay workers $11.25 an hour, and businesses with fewer than 100 employees are required to pay workers at least $10.25 an hour. 

Minimum wage in the city will continue to rise until it reaches $15 for large businesses by 2022, and $15 for small businesses by 2024. 

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